Question

The owner of ProPhone has charted the company's marginal revenue and marginal cost for its latest line of smartphones, the Blazer. Use the chart to calculate the company's profit. If ProPhone sells four phones, the company will

break even
lose money
maximize profits
make some profit

Answer 1

D - Make some profit

Step-by-step explanation:

I took the test and this was correct.

Answer 2

marginal cost for 4 phones = 50
marginal revenue = 120

marginal cost for 1 phone = 80
marginal revenue = 200

Therefore,
If Pro-Phone sells four phones, the company will maximize profits.